Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.3% to close under $1,802 as the dollar continued to rise on soft US data and recession concerns, eroding demand for alternative stores of value. The metal’s fifth straight lower finish resulted in a 1.6% loss for the week.

The ISM gauge of US manufacturing fell 3.1% to a two-year low in June, another sign that the economy has hit the skids. Separately, construction spending dropped 0.8% in May, the Commerce Department reported, nearly three times most forecasts

The Atlanta Fed slashed its real GDP projection for Q2 again, from minus 1% yesterday to minus 2.1% today. Meanwhile, JP Morgan Chase slashed its outlook for real US growth to 1% in Q2 and Q3, putting the world’s largest economy perilously close to recession.

Benchmark 10-year Treasury yields retreated under 2.9% as global investors sought safety in US government debt.

The dollar rose 0.4% against major rivals on safe-haven inflows, pressuring gold and other commodities by making them pricier in other currencies.

The other precious metals were mixed for the day and week. Silver tumbled 3.4% for a weekly loss of 6.9%. Platinum fell 2.7% today and 3.6% this week. Palladium added 1.2% for a weekly rise of 4.5%.

At the Comex close: August gold futures fell $5.80 to 1,801.50; September silver plunged 68 cents to $19.67, a two-year low; October platinum lost $24 to $871.30; and September palladium picked up $22, to $1,938.10 an ounce.